First Update:

The original text below was written in Sept. 2006 - Things have changed sense then.  The best buy on silver right now is 1000 ounce bars for just a fraction over spot.  Silver eagles are bringing $10 over spot, you can get a dollar set at the mint for $30 and that incluse 4 presidents, 1 indian, and 1 eagle.  Also Silver dollars are a better buy than eagles.  at $10 per ounce each silver dollar is worth about $7.20 in silver.  Or about $10 per coin for AU/BU.  If and when silver turns down , you risk less on 90% US coins than on silver eagles.

Original:

This guide is how I determine how much to pay for silver and gold I buy on ebay.  Also how to detect counterfit silver bars.

Let's say spot price on silver is $11.00 today.  How much should you buy or sell a 100 ounce bar for?  I have seen them go $200 to $300 over spot on ebay, and I have seen them go just under spot.  Is there a differenec in J&M, Englehard, and others?  In my opinion no.  Here's why:  I always buy my silver from the best source.  Sometimes is it a big company like Monex, other times it is a local dealer.  Sometimes I buy on ebay.   But how much do I pay? 

First I call a local coin dealers in Fort Worth and in Dallas.  I usually get a better deal in Fort Worth.  If someone can beat that their price, I'll buy from them provided they have a good rating or reputation.  I do the same thing when selling Silver.  At the $11.00 price I can buy 100 ounce bars in Dallas at $60 over.  That's $1160.  And I can buy them in Fort Worth at $40 over.  That's $1140.  Obviously I would choose to fill my order in Fort Worth, unless they are sold out.  Then I would buy in Dallas.  Of course I check ebay and try to beat the $1140 price with shipping included.  If I can beat the local price I buy all I can on ebay.  I have been getting 2006 eagles on ebay for .40 to .80 over spot.  The local dealers are about $2.00 to $2.25 over spot.

What kind of silver do I buy?  US eagles 1st if the price is right.  J&M 100 bars second.  Why J&M?  I have seen two Englehard bars cut in half that were filled with lead.  I have never seen a counterfit J&M bar.  To test your bar without cutting it, learn the sound of the ping.  Take plastic grocery sack and place the bar in side.  With a small hammer give it a light tap.  It should make high pitched ping sound.  If it makes a Thud it may be counterfit.  I turst my local dealers but check everything that I buy on ebay. 

How much should I expect to sell for on ebay.  The local dealers pay from .20 to $1.00 under spot.  If I can get enough over spot to cover my fees and realize a spot price, I am happy to sell on ebay.  Unless you are a dealer,  Spot is a fair way to buy and a fair way to sell bulk bullion.  Generic rounds should carry up to $1.00 premium.  I bought 1000 for a .50 premium.  Premium being the amount over spot.

Be careful not to get an "I must when this auction attitude."  I have seen many items bring up to 50% more than they are worth.  For example, I can buy a 1982 1 ounce gold Panda locally for $2200 and sell it locally for $2000.  Anything under $2000 on ebay, I will buy.  Anything over $2200 on ebay is ... well ... let's just say I feel sorry for the buyers.  Recently I saw one bring $3000.  I would feel guilty if I sold one for that price. 

There has always been a steady supply on silver on ebay.  And there will always be a supply of silver on ebay.  Even when silver is going straight up and there seems to be a shortage.  People will sell it on ebay.  Trust me.  It will be there, because many of us subscribe to the idea that you never go broke taking profits.  When there is no silver left to sell on ebay, I will be selling mine.  A few thousand ounces.

Don't painc buy and sell!  The trend is your friend.  Right now, Sept. 06, the trend is still up.  Buy on dips.

Second Update - Updated 10/20/2009

The silver eagles I bought in 2006 for .20 were a great deal.  They were also a loss leader for a criminal. He sold many at that price and got a good rating.  Then he sold $250,000 more but never delivered.  John Paul was arrested and convited of wire fraud.  I am out $1300. 

Silver and gold eagles are in such high demand at the mint, and are required by law to be minted that the mint stopped minting proof eagles in 2009.  All blanks are for regular strikes.  Proof strikes are not required by law.  High demand is creating high premiums.  If I were buying silver eagles today, I would pay up to $2.00 over spot.  If I could not get them for $2 or less over spot, I would buy Maples or generic rounds.

$5 or 1/10 gold ealges coins are currently bringing as much as $140-$150 per coin.  Come on folks get REAL!  the coin is worth $105 in gold @ $1050 spot.  I would pay $115 tops @ 1050 spot.  Otherwise I would buy british soverigns for $263. They have just under 1/4 ounce in them. 

Happy investing!  Royce dot Knight at gmail.